Five Lessons for Deficit Busters

A recent study of successful deficit reductions found they averaged more than $5 in spending cuts for every $1 in tax hikes.

By

Michael J. Boskin

June 20, 2011

Bipartisan budget negotiations to raise the debt ceiling are focused on deficit reduction. That's progress. It's imperative that we rein in spending given the risks posed by our growing debt, ongoing deficits and President Obama's spending binge. But we should be wary of "balanced" spending-cut/tax-hike proposals promising phony future savings. Lawmakers should pay heed to five vital lessons from the history of attempts to consolidate the budget and reform major programs: